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GOLD: ETFS Physical Gold

Sean K

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I can't find a specific thread on this one, so starting it here.

This product is an ETF you can buy on the ASX that claims to track the Australian gold price, less fees which are 0.04%pa, less any brokerage you pay to buy it. With USD gold currently in a short term upward trajectory, seemingly heading to a break up through to all time highs, it's another way of playing gold's rise apart from the regular individual stocks or gold stock ETFs.

It's been running for 8 years, so you don't get the full, long term picture of gold in AUD, and it's of course different to USD POG, but you can see by the chart this thing is starting to break up as well, but further off highs due to AU/USD movements.


From their website:

ETFS Physical Gold (ASX Code: GOLD) offers low-cost access to physical gold via the stock exchange and avoids the need for investors to personally store their own bullion.

GOLD offers investors a simple, cost-efficient and secure way to access gold by providing a return equivalent to the movements in the Australian dollar price of gold less a daily management fee.

GOLD is backed by physically allocated gold bullion held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Bullion Market Association's (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.

GOLD is an exchange traded product (ETP) that can be created and redeemed on demand (by Authorised Participants). It trades on the stock exchange just like a share and is settled and held in ordinary brokerage accounts.



Screen Shot 2021-11-18 at 8.08.21 am.png
 
One thing that's quite telling with this chart is the recent cross over of the 50 and 200d ma, which it pretty bullish and both have flattened and now seem to be ticking north. All still looks positive for a gold breakout.

Screen Shot 2021-11-22 at 4.17.01 pm.png
 
Jordan is remaining cool and says, "a (cup and handle) breakout past $2,100 could be several months or a year away." He has some great targets for the patient and is currently looking around for contender 5,10 or 20 bagger juniours.


 
Jordan is remaining cool and says, "a (cup and handle) breakout past $2,100 could be several months or a year away." He has some great targets for the patient and is currently looking around for contender 5,10 or 20 bagger juniours.

That chart from 96 overlayed is excellent. If we gold bugs are right on this, it's going to be a good 2022.
 
This product is an ETF you can buy on the ASX that claims to track the Australian gold price, less fees which are 0.04%pa, less any brokerage you pay to buy it. With USD gold currently in a short term upward trajectory, seemingly heading to a break up through to all time highs, it's another way of playing gold's rise apart from the regular individual stocks or gold stock ETFs.

Do you prefer this to PMGOLD because of the cheaper management fee?
 
Do you prefer this to PMGOLD because of the cheaper management fee?

I haven't bought this yet, but probably will just via my trading platform so fees aren't really a factor. I just expect gold in all denominations to go up significantly in the medium term. Seems like the USD POG break through $1835 has held thus far, so not far off an entry into this.
 
I haven't bought this yet, but probably will just via my trading platform so fees aren't really a factor. I just expect gold in all denominations to go up significantly in the medium term. Seems like the USD POG break through $1835 has held thus far, so not far off an entry into this.


Totally agree with you, Sean. However, this time around I am not going to hold as many gold stocks as I did a couple of years ago there is just so much about to take off I am trying to create a shopping list.

During the last rise, I held PMGOLD and MNRS and found PMGOLD (which is travelling in the same shape as GOLD, just a lot cheaper of course), I found it began to lag slightly lower to MNRS toward the top of the run. MNRS kept rising PMGOLD started to lag slightly. I can only guess the rising $au may have caused the lag. dunno :)


For any reader who is not familiar with PMGOLD it is an ETF that is 100% gold from the Perth Mint and is government guaranteed and PMGOLD can be physically redeemed for any of The Perth Mint’s bullion bars.

pmgold 19.11.21.png
 
For me it may be a matter of higher liquidity therefore a tighter spread.

When I was doing my research on these I seem to recall that GOLD had a lesser counterparty risk.

To be honest I kind of like physical, but have some holdings in GOLD.

My physical is HODL, whereas my GOLD (and ETPMAG) may be subject to some trades... Therefore contest risk is less.
 
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Jordan is remaining cool and says, "a (cup and handle) breakout past $2,100 could be several months or a year away." He has some great targets for the patient and is currently looking around for contender 5,10 or 20 bagger juniours.
More on that prediction of " a (cup and handle) appears to be a reality. Received an interesting email suggesting and showing of a cup and handle, looking well into formation on the monthly chart

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The market has built the Handle part projected in 2020 almost as planned. The retracement was not too deep as it slightly pierced the 38.2% Fibonacci retracement level at $1,690 to establish the valley of $1,673. This is a good sign for the pattern. The price has spent seventeen months inside of the final part (orange). I warned readers, "it could take several years (for the market to build the Handle) as Cup has been shaped within long 9 years". This month, the price has managed to break up the Handle.

The futures price closed at $1,900 last week. It has come close to the bullish trigger set at the left top of the Cup at $1,924. However, it is not a big distance for an unleashed metal. I chose the futures price chart to highlight one crucial indicator, the volume. It should increase significantly on the breakout to confirm the ongoing demand pushing the price higher.

The RSI keeps a bullish stance, as it did not sink below the "waterline" of 50 amid the recent sell-off. Therefore, it supports bulls these months.

The profit target is located at the height of the Cup added to the breakup point. I highlighted it at $2,800 for you on the chart. The risk/reward ratio stands at a sound level of 3.5.
The failure to break up the next barrier could ignite the further collapse below the stop trigger of $1,673. This is the valley of the Handle part. In this case, there are two paths that could emerge.

The first downside path could be a more complex retracement, which could push the price down to the $1,500 level if new leg 2 is equal to leg 1. The depth of the correction will be more than 50% then, but still above 61.8%.
 
XAU/USD skyrocketed overnight, breaking above the key resistance zone of 1915, marked by the peak of June 1st. With the precious metal being in a strong rally mode since January 28th, when it hit the upside support line, traders will consider the near-term picture to be positive.

When writing, the metal looks to be heading towards the 1960 zone, which provided resistance on November 9th, 2020, and January 6th, 2021. The investors believe that the bulls may take a break after testing that critical zone. However, as long as any potential retreat stays limited above 1890, we could expect another round of buying and perhaps a break above 1960. Such a break could see scope for extensions towards the 2015 territory, defined as s resistance.

On the downside, a dip below 1870, marked by the inside swing, could signal a more significant correction lower, with the next potential stop perhaps being the low that same day, at 1830. If that level doesn’t hold, we could see declines towards the low at the 1800 zone.

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Hi Im looking to buy a few of these GOLD ETFS..
However I notice a few experienced posters re Gold warn against buying 'Gold ETFs / paper gold' as it may not be safe. ? (eg Garpal Gumnuts posts) !
Although I dont have a very big backyard like Garpal seems to so dont think I could fit / bury much out there so not to keen on the physical stuff.
Is this stock item the same as what you refer to as paper Gold?

Thanks !
Grant
 
Hi Im looking to buy a few of these GOLD ETFS..
However I notice a few experienced posters re Gold warn against buying 'Gold ETFs / paper gold' as it may not be safe. ? (eg Garpal Gumnuts posts) !
Although I dont have a very big backyard like Garpal seems to so dont think I could fit / bury much out there so not to keen on the physical stuff.
Is this stock item the same as what you refer to as paper Gold?

Thanks !
Grant

You should be fine with a small backyard, 1kg bullion is about the size of your smartphone
 
@Sean K I have actually been tracking this and the other PM ETFs, not so much for price but for total ounces held by the funds as an indication of money flow

I see that as a supporting / leading indicator of where prices (via investor demand) for the underlying metal might be heading

here is the latest data refresh, I haven't updated the data since the most recent increase in ounces held (about 1 week ago)

I am in no way endorsing the product ETFs, I think people should really understand the custodian storage model of these types of products first and foremost

hope you find the data interesting though

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yes, you are buying less than a full allocation to the ounce or portion thereof, ie the Management and Storage fees are baked into 1 unit being slightly less than 1/100 th of an ounce

but I guess you're probably weighing up your storage costs / admin costs whichever option you're looking into.

the really good thing is the transparency though with GOLD publishing their Bar List every day, I track this and very interesting over the last month

16,500 oz increase in physical goldholdings over the last month, approx$42M AUD converted into physical be that new flowof funds into the ETF or prior paper positions being converted to physical

like I said interesting

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1662390907333.png
 
yes, you are buying less than a full allocation to the ounce or portion thereof, ie the Management and Storage fees are baked into 1 unit being slightly less than 1/100 th of an ounce

but I guess you're probably weighing up your storage costs / admin costs whichever option you're looking into.

the really good thing is the transparency though with GOLD publishing their Bar List every day, I track this and very interesting over the last month

16,500 oz increase in physical goldholdings over the last month, approx$42M AUD converted into physical be that new flowof funds into the ETF or prior paper positions being converted to physical

like I said interesting

View attachment 146394




View attachment 146395


View attachment 146396
Very interesting
 
What do people think is the best way to invest in gold?

Are there any obvious downsides to a fund like the one in this thread?

To buy the physical.

If you doubt this, then buy an ETF and ask to redeem your shares into physical. Sprott will do so (PHYS). Apart from that I don't know of any that will.

jog on
duc
 
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